Saturday, 9 November 2013

Introduction To Business MGT211 GDB Solution Spring November 2013

After attempting this GDB students will be able to:
  • Comprehend the importance of ethics in business practices.
  • Analyze that how unethical business practices harm the other business’s revenues.
Case:
Microsoft is an American multinational software corporation that develops, manufactures, licenses, and supports a wide range of products and services related to computing. All over the world the companies and individuals use wide variety of its quality products. Microsoft charge good price for its quality product and encourage the purchase of original software. In Pakistan the prices of original software are in thousands and most of the individual users cannot afford to purchase the original software.

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It has been observed that pirated copies of the same software are conveniently available for PKR 40-50 in markets. This is against the copy right laws as all software of Microsoft are copy righted. For Microsoft piracy is a serious issue as directly affects the quality of its brand and revenue.  People who are against the piracy believe that it is a serious crime. Companies invest millions and billions of dollars in research and development and brand positioning thus selling pirated versions of software is a theft. Some argue that most of the people cannot afford to buy software thus pirated versions at low cost can solve their many computing issues. In addition to that such large companies can afford such losses occur due to piracy as their revenues are much larger.
Point of Discussion:
You have read the comments of both schools of thoughts about piracy in the above mentioned case.
In your opinion which school of thought is appropriate and why? Provide at least five points of discussion to justify your opinion.
Marking scheme: (each point carries 6 marks). You may add examples to enrich your discussion.

Idea Solution: 

Due to high cost, people do not want to pay money on Original software’s because they are getting pirated software’s. People want to learn new technologies but its unaffordable for the people of underdeveloped countries.

In above mentioned case two main topics are defined.Ethical school of thought and non ethical or behavioral school of thought.Microsoft that is American corporation develops microsoft and other products,sell its products at high prices due to their high quality.In omparison to the other case people buy pirated products becoz of high price as every body can’t afford high prices.Now the main points are according to our GDB may b: 1:Ethical school of thought is appropriate in this case.becoz people thought that using pirated products is crime. 2:AS microsoft is a large firm and can afford larger losses so it is absolutely wrong about ethics.

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3:Firms who are producing pirated products to sell  them at lower cost are not doing good job becoz people think that it is large firm an can afford big losses.4:This is ethical school of thought because people consider it a serious crime to sell copy rights at low cost.